Jason Calacanis, the angel investor of many prominent companies like Robinhood, Bitcoin startup Keza and Uber, has stirred controversy after claiming that Bitcoin could be replaced.

In his X post, Calacanis told his 981,600 followers that Bitcoin has enjoyed a wonderful streak, but he predicts that there could be something even bigger than Bitcoin that would replace Bitcoin, resulting in a 'restart in the game.'

Many industry leaders has since come forward to refute his claims, with some even claiming that "trying to build a better Bitcoin is a fool's errand."

Mending the gaps with layer-2 project

Building on Calacanis's comments, many founders and executives of Bitcoin-related companies claim the accurate solution for mending the loopholes of Bitcoin is by building layer-2 projects that could compliment the Bitcoin protocol and not to build something entirely new that would outperform Bitcoin.

Swan Bitcoin co-founder Brady Swenson dismissed the idea of Bitcoin being replaced, stating:

“Winning protocols don’t get replaced; they are built upon.”

Lightspark CEO David Marcus echoed similar sentiments, pointing out that Bitcoin’s limitations can be addressed through layer-2 solutions rather than seeking to replace the protocol itself.

In his podcast, Anthony Pompliano noted that replacing Bitcoin is literally impossible. He gave technology such as the internet and the mobile as an examples, and how they have yet to be replaced despite growing innovations.

Co-founder and CTO of SwanBitcoin Yan Pritzker also mentioned that every "better Bitcoin" already existed and all have failed. He argued that "crypto isn't tech disruption; it's monetary network effects."

Bitcoin’s ecosystem is so widereach, making it harder to replace

Similarly, many other experts have also emphasised the importance of layer-2s for the expansion of the Bitcoin ecosystem, as it can provide use cases that the bitcoin network cannot support, such as deploying smart contracts.

But not all share the same sentiment. Muneeb Ali, the co-founder of Stacks, predicts that more than two-thirds of existing Bitcoin layer-2 projects will eventually dies out as the initial excitement around these protocols wanes.

There are also others who have pointed out that given the current reach of the Bitcoin ecosystem makes it very hard to be replaced. Bitcoin advocate Wayne Vaughan explains that with the Bitcoin network exponentially expanding, the chances of it getting replaced will also exponentially diminish.

Furthermore, Bitcoin also has been recognised by governments as well. For example, Trump has already set up a strategic Bitcoin reserve to keep its BTC holdings for the long term. This kind of government adoption also makes it very unlikely for Bitcoin would be replaced.

Strive Funds CEO Matt Cole stated that the stability of Bitcoin will be the reason behind its longevity. He claims that while other cryptocurrencies such as alt coins might have occasional seasons of highs that could allow investors to pocket a huge sum of profit, but ultimately investors would be better off with Bitcoin because of its overall price stability.

This isn’t the first time Calacanis has sparked debate in the crypto space. Back in June 2020, he stirred controversy by claiming that most crypto projects are run by “unqualified idiots” or “grifters” with below-average skills.

Despite his skepticism, Bitcoin’s dominance remains unshaken, with industry leaders focusing on building on top of Bitcoin rather than replacing it.